Bill Summary
The "Research Advancing to Market Production for Innovators Act" is a bill that aims to improve the commercialization activities in the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. These programs provide funding for small businesses to conduct research and development with the goal of commercializing their products. The bill proposes several changes to the existing legislation, including shortening the time for peer review, adding a requirement for commercialization expertise in the review process, and establishing a Technology Commercialization Official in each federal agency participating in the programs. It also includes provisions for improvement of technical and business assistance, a commercialization impact assessment report, and patent assistance for SBIR and STTR recipients. The bill also requires the Small Business Administration to submit a report to Congress on the impact of the changes made by the bill.
Possible Impacts
1. The ``Research Advancing to Market Production for Innovators Act'' could affect small businesses participating in the SBIR and STTR programs by providing them with additional resources and assistance in commercializing their technologies. This could help them to bring their products and services to market, potentially increasing their sales and revenue.
2. The Act may also have an impact on the Federal agencies participating in the SBIR and STTR programs by requiring them to include commercialization expertise in their peer review process. This could lead to a more thorough evaluation of the potential for commercialization of technologies, potentially increasing the success rate of projects and improving the overall impact of the programs.
3. The Act could also have an effect on the United States Patent and Trademark Office (USPTO) by requiring them to provide assistance to SBIR and STTR recipients in obtaining intellectual property protections. This could potentially lead to an increase in the number of patents obtained by small businesses, allowing them to protect and commercialize their innovative ideas.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3839 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 3839
To improve commercialization activities in the SBIR and STTR programs,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 18, 2019
Ms. Houlahan (for herself and Mr. Balderson) introduced the following
bill; which was referred to the Committee on Small Business, and in
addition to the Committees on Science, Space, and Technology, and the
Judiciary, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To improve commercialization activities in the SBIR and STTR programs,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Research Advancing to Market
Production for Innovators Act''.
SEC. 2. IMPROVEMENTS TO COMMERCIALIZATION SELECTION.
(a) In General.--Section 9 of the Small Business Act (15 U.S.C.
638) is amended--
(1) in subsection (g)--
(A) in paragraph (4)(B)(i), by striking ``1 year''
and inserting ``180 days'';
(B) in paragraph (11), by striking ``and'' at the
end;
(C) in paragraph (12), by striking the period at
the end and inserting ``; and''; and
(D) by adding at the end the following:
``(13) with respect to peer review carried out under the
SBIR program, to the extent practicable, include in the peer
review--
``(A) the likelihood of commercialization in
addition to scientific and technical merit and
feasibility; and
``(B) not less than 1 reviewer with
commercialization expertise who is capable of assessing
the likelihood of commercialization.'';
(2) in subsection (o)--
(A) in paragraph (4)(B)(i), by striking ``1 year''
and inserting ``180 days'';
(B) in paragraph (15), by striking ``and'' at the
end;
(C) in paragraph (16), by striking the period at
the end and inserting ``; and''; and
(D) by adding at the end the following:
``(17) with respect to peer review carried out under the
STTR program, to the extent practicable, include in the peer
review--
``(A) the likelihood of commercialization in
addition to scientific and technical merit and
feasibility; and
``(B) not less than 1 reviewer with
commercialization expertise who is capable of assessing
the likelihood of commercialization.'';
(3) in subsection (cc)--
(A) by striking ``During fiscal years 2012 through
2022, the National Institutes of Health, the Department
of Defense, and the Department of Education'' and
inserting the following:
``(1) In general.--During fiscal years 2019 through 2024,
each Federal agency with an SBIR or STTR program''; and
(B) by adding at the end the following:
``(2) Limitation.--The total value of awards provided by a
Federal agency under this subsection in a fiscal year shall
be--
``(A) except as provided in subparagraph (B), not
more than 10 percent of the total funds allocated to
the SBIR and STTR programs of the Federal agency during
that fiscal year; and
``(B) with respect to the National Institutes of
Health, not more than 15 percent of the total funds
allocated to the SBIR and STTR programs of the National
Institutes of Health during that fiscal year.
``(3) Extension.--During fiscal years 2023 and 2024, each
Federal agency with an SBIR or STTR program may continue phase
flexibility as described in this subsection only if the reports
required under subsection (tt)(1)(B) have been submitted to the
appropriate committees.'';
(4) in subsection (hh)(2)(A)(i), by inserting ``application
process and requirements'' after ``simplified and
standardized''; and
(5) by adding at the end the following:
``(vv) Technology Commercialization Official.--Each Federal agency
participating in the SBIR or STTR program shall designate a Technology
Commercialization Official in the Federal agency, who shall--
``(1) have sufficient commercialization experience;
``(2) provide assistance to SBIR and STTR program awardees
in commercializing and transitioning technologies;
``(3) identify SBIR and STTR program technologies with
sufficient technology and commercialization readiness to
advance to Phase III awards or other non-SBIR or STTR program
contracts;
``(4) coordinate with the Technology Commercialization
Officials of other Federal agencies to identify additional
markets and commercialization pathways for promising SBIR and
STTR program technologies;
``(5) submit to the Administration an annual report on the
number of technologies from the SBIR or STTR program that have
advanced commercialization activities, including information
required in the commercialization impact assessment under
subsection (xx);
``(6) submit to the Administration an annual report on
actions taken by the Federal agency, and the results of those
actions, to simplify, standardize, and expedite the application
process and requirements, procedures, and contracts as required
under subsection (hh) and described in subsection (xx)(E); and
``(7) carry out such other duties as the Federal agency
determines necessary.''.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Administrator of the Small Business Administrator shall
submit to the Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives summarizing the metrics relating to and an evaluation
of the authority provided under section 9(cc) of the Small Business
Act, as amended by subsection (a), which shall include the size and
location of the small business concerns receiving awards under the SBIR
or STTR program.
SEC. 3. IMPROVEMENTS TO TECHNICAL AND BUSINESS ASSISTANCE;
COMMERCIALIZATION IMPACT ASSESSMENT; PATENT ASSISTANCE.
Section 9 of the Small Business Act (15 U.S.C. 638), as amended by
section 2, is amended--
(1) in subsection (q)--
(A) in paragraph (1), in the matter preceding
subparagraph (A)--
(i) by striking ``may enter into an
agreement with 1 or more vendors selected under
paragraph (2)(A)'' and inserting ``shall
authorize recipients of awards under the SBIR
or STTR program to select, if desired,
commercialization activities provided under
subparagraph (A), (B), or (C) of paragraph
(2)''; and
(ii) by inserting ``, cybersecurity
assistance'' after ``intellectual property
protections'';
(B) in paragraph (2), by adding at the end the
following:
``(C) Staff.--A small business concern may, by
contract or otherwise, use funding provided under this
section to hire new staff, augment staff, or direct
staff to conduct or participate in training activities
consistent with the goals listed in paragraph (1).'';
(C) in paragraph (3), by striking subparagraphs (A)
and (B) and inserting the following:
``(A) Phase i.--A Federal agency described in
paragraph (1) shall authorize a recipient of a Phase I
SBIR or STTR award to utilize not more than $6,500 per
project, included as part of the award of the recipient
or in addition to the amount of the award of the
recipient as determined appropriate by the head of the
Federal agency, for the services described in paragraph
(1)--
``(i) provided through a vendor selected
under paragraph (2)(A);
``(ii) provided through a vendor other than
a vendor selected under paragraph (2)(A);
``(iii) achieved through the activities
described in paragraph (2)(C); or
``(iv) provided or achieved through any
combination of clauses (i), (ii), and (iii).
``(B) Phase ii.--A Federal agency described in
paragraph (1) shall authorize a recipient of a Phase II
SBIR or STTR award to utilize not more than $50,000 per
project, included as part of the award of the recipient
or in addition to the amount of the award of the
recipient as determined appropriate by the head of the
Federal agency, for the services described in paragraph
(1)--
``(i) provided through a vendor selected
under paragraph (2)(A);
``(ii) provided through a vendor other than
a vendor selected under paragraph (2)(A);
``(iii) achieved through the activities
described in paragraph (2)(C); or
``(iv) provided or achieved through any
combination of clauses (i), (ii), and (iii).'';
and
(D) by adding at the end the following:
``(5) Targeted review.--A Federal agency may perform
targeted reviews of technical and business assistance funding
as described in subsection (mm)(1)(F).''; and
(2) by adding at the end the following:
``(ww) I-Corps Participation.--
``(1) In general.--Each Federal agency that is required to
conduct an SBIR or STTR program with an Innovation Corps
(commonly known as `I-Corps') program shall--
``(A) provide an option for participation in an I-
Corps teams course by recipients of an award under the
SBIR or STTR program; and
``(B) authorize the recipients described in
subparagraph (A) to use an award provided under
subsection (q) to provide additional technical
assistance for participation in the I-Corps teams
course.
``(2) Cost of participation.--The cost of participation by
a recipient described in paragraph (1)(A) in an I-Corps course
may be provided by--
``(A) an I-Corps team grant;
``(B) funds awarded to the recipient under
subsection (q);
``(C) the participating teams or other sources as
appropriate; or
``(D) any combination of sources described in
subparagraphs (A), (B), and (C).
``(xx) Commercialization Impact Assessment.--
``(1) In general.--The Administrator shall coordinate with
each Federal agency with an SBIR or STTR program to develop an
annual commercialization impact assessment report of the
Federal agency, which shall measure, for the 5-year period
preceding the report--
``(A) for Phase II contracts--
``(i) the total amount of sales of new
products and services to the Federal Government
or other commercial markets;
``(ii) the total outside investment from
partnerships, joint ventures, or other private
sector funding sources;
``(iii) the total number of technologies
licensed to other companies;
``(iv) the total number of acquisitions of
small business concerns participating in the
SBIR program or the STTR program that are
acquired by other entities;
``(v) the total number of new spin-out
companies;
``(vi) the total outside investment from
venture capital or angel investments;
``(vii) the total number of patent
applications;
``(viii) the total number of patents
acquired;
``(ix) the year of first Phase I award and
the total number of employees at time of first
Phase I award;
``(x) the total number of employees from
the preceding completed year; and
``(xi) the percent of revenue, as of the
date of the report, generated through SBIR or
STTR program funding;
``(B) the total number and value of subsequent
Phase II awards, as described in subsection (bb),
awarded for each particular project or technology;
``(C) the total number and value of Phase III
awards awarded subsequent to a Phase II award;
``(D) the total number and value of non-SBIR and
STTR program Federal awards and contracts; and
``(E) actions taken by the Federal agency, and the
results of those actions, relating to developing a
simplified and standardized application process and
requirements, procedures, and model contracts
throughout the Federal agency for Phase I, Phase II,
and Phase III SBIR program awards in subsection (hh).
``(2) Publication.--A commercialization impact assessment
report described in paragraph (1) of a Federal agency shall
be--
``(A) included in the annual report of the Federal
agency required under this section; and
``(B) published on the website of the
Administration.
``(yy) Patent Assistance.--
``(1) Definitions.--In this subsection--
``(A) the term `low bono services' means services
provided at a reduced fee; and
``(B) the term `USPTO' means the United States
Patent and Trademark Office.
``(2) Assistance.--The Administrator shall enter into an
interagency agreement with the USPTO to assist recipients of an
award under the SBIR or STTR program (in this paragraph
referred to as `SBIR and STTR recipients') relating to
intellectual property protection through--
``(A) track one processing, under which the USPTO
may--
``(i) allocate--
``(I) not less than 5 percent or
500 track one requests, whichever is
greater, per year to SBIR and STTR
recipients on a first-come, first-
served basis; and
``(II) not more than 2 track one
requests to an individual SBIR and STTR
recipient, to expedite final
disposition on SBIR and STTR program
patent applications; and
``(ii) waive the track one fee requirement
for SBIR and STTR recipients; and
``(B) through the USPTO Patent Pro Bono Program,
providing SBIR and STTR recipients--
``(i) pro bono services if the recipient--
``(I) had a total gross income of
more than $150,000 but less than
$5,000,000 in the preceding calendar
year, and expects a total gross income
of more than $150,000 but less than
$5,000,000 in the current calendar
year;
``(II) is not under any obligation
to assign the rights to the invention
to another entity other than the
Federal Government; and
``(III) has not previously received
USPTO pro bono or low bono services; or
``(ii) low bono services if the recipient--
``(I) had a total gross income of
more than $5,000,000 but less than
$10,000,000 in the preceding calendar
year, and expects a total gross income
of more than $5,000,000 but less than
$10,000,000 in the current calendar
year;
``(II) is not under any obligation
to assign the rights to the invention
to another entity other than the
Federal Government; and
``(III) has not previously received
USPTO pro bono or low bono services.
``(3) Outreach.--The Administrator shall coordinate with
the USPTO to provide outreach regarding the pro se assistance
program and scam prevention services of the USPTO.''.
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